Air Passenger Duty To Rise by 8 Per Cent From April 2012 Affecting the Caribbean holidays industry
The British chancellor, George Osborne, announced yesterday that APD would be increased by eight per cent in a double inflation rise. The rise will apply from April, 2012 and will significantly affect the price of flights for Caribbean holidays.
Despite receiving an open letter from aviation, tourism and trade unions, calling for a freeze on the APD increase, the British chancellor has decided to go ahead with the eight per cent double inflation rise on the tax.
The rise in APD will affect the price of flights coming in and going out of the UK and travellers planning Caribbean holidays will see a hike in the price of flights to the region as airlines are forced to add the hike to their fares.
The APD rise will come into effect from 1st April, 2012 and is disappointing news for tourism and aviation leaders who fought to scrap the duty completely.
"The government has repeatedly said it looks to travel and tourism as one of its key drivers of growth but instead of listening to concerns that APD is stunting this growth, not only in travel but in the wider economy too, it has chosen to significantly increase the tax burden,” stated Mark Tanzer, the Chief Executive of the Association of British Travel Agents.
Image by: *michael sweet*, on Flickr
APD was introduced in 1994 and is charged according to how far away the capital of a country is from the United Kingdom. Despite Florida and Hawaii being located further from the UK, the country’s capital New York is closer than many Caribbean capital cities, so passengers taking holidays to the Caribbean are charged more.
Last year, the British chancellor, George Osborne, announced a freeze in APD for 12 months but it seems that passengers travelling in and out of Britain are now paying for that freeze with the highest flight taxes in the world.
Osborne also confirmed in his Budget speech yesterday that the APD would rise again with the rate of inflation in April, 2013.
Image by: *michael sweet*, on Flickr
The worst hit travellers will be those planning long haul trips such as holidays in the Caribbean, the United States, the Middle East, South Africa, South America and Australia.
The cost of APD for a family of four flying to the United States or Egypt has risen from £240 to £260, and the same family taking flights to the Caribbean or South Africa, will now pay £324, compared to the previous £300.
In the open letter which was delivered to the British Chancellor prior to the Budget announcement, tourism, aviation and trade unions urged the government to scrap the duty, saying that by removing it, an additional 91,000 British jobs could be created and £4.2 billion would be added to the economy in just 12 months.
Image by: worldtraveller5, on Flickr
The news is also a blow for the Caribbean tourism industry which is only just beginning to recover from the global recession. The region’s economy heavily relies on travellers going on holidays in the Caribbean and the increased APD could see families heading to destinations that are closer to the UK or to the United States.
Talk to a specialist
Call 020 7644 1770 to speak with our award-winning travel consultants.
Opening hours 10:30 - 17:30 GMT
Popular Holidays In Caribbean and Costa Rica Browse all
Be Live Collection Punta Cana offers Pristine white beaches, swaying palms and a pulsating Latin vibe
Head to where the sun shines and enjoy a week-long holiday by the sparkling turquoise beaches of Punta Cana. Here you'll find endless fun for all the family as well as plenty of relaxing options for adults.
- 24-Hour All-Inclusive Service
- Enjoy unlimited access to a white soda beach that's perfect for snorkelling
- World class facilities for all the family plus children stay for half the price
Stay at the luxurious Dreams resort with various benefits including a room upgrade to make your holiday extra special
- Huge Savings when staying in Preferred Club rooms or suites
- Enjoy moonlit themed parties, great music shows and outdoor cinema screenings on the beach
- A wide choice of a la carte themed restaurants and chic bars ensure there is something to suit everyone
- The Explorer's Kids Club has a fully supervised children's programme with various different activities
Stay close to all the action in a fabulous resort that's part of a beautiful ecological reserve and sits right next to Xcaret, Cancun's number one theme park.
- Exclusive discount to the eco-archaeological Xcaret Park
- Enjoy access to 11 Restaurants and 10 Bars & access to 5 Swimming Pools
- Limitless all-inclusive fun and thrills for everyone in a beautiful eco-reserve facing a glorious beach
Combine colourful and vibrant Havana with a relaxing summer 2017 beach holiday in an award winning resort on the shores of Varadero
- Book early and benifit from huge early bird summer discounts!
- Discover Havana by day visit the historial sites and by night you can listen to live music or dance to the Salsa beat
- Enjoy complimentary pool-based dive courses on offer for beginners and experience one free daily dive at the Royalton Hicacos
- Three freshwater pools including four whirlpools and signature swim-up pool bar at Royalton Hicacos ensure an unforgettable holiday
Varadero is a showpiece of Cuba's natural beauty; stunning white beaches, turquoise waters and clusters of lofty palm...
If you're searching for the perfect combination of beach fun and natural discovery, look no further. Home to ancient...
Get the best of Havana and Varadero with this fabulous combination of city and beach in two of Cuba's finest hotels, the...
Fancy a charming and adventurous holiday? Why not try our twin centre package that allows you to explore the contagious...
Are you searching for an adventurous holiday filled with culture, authenticity and charm? Then why not enjoy a twin...
Escape to the pristine beaches of the south coast of Barbados for a holiday you will never forget. This is the perfect...